Final expense insurance is a type of whole life insurance that is specifically designed to cover your final expenses, like a funeral, burial, cremation, memorial service and/or reception. It can also be used to cover costs associated with hospice care or legal fees. You might also see it referred to as funeral insurance, burial insurance or cremation insurance.
Final expense insurance offers a number of benefits that could make it a good addition to your financial plan.
The death benefit offered by final expense insurance is typically just enough to cover final expenses—between $2,000 and $20,000. This makes the coverage less expensive than a whole life policy with a larger death benefit.
Most insurance companies offering final expense insurance do not require a medical exam to qualify for coverage. You will usually just need to answer questions about your age and health to qualify.
Despite its name, your beneficiaries are not required to use your policy's death benefit to pay for your final expenses. This flexibility can help make a difficult time a bit easier for your loved ones.
As a whole life insurance policy, your final expense policy will typically accrue cash value as you pay your premiums. You could access that money while you're alive (although doing so will reduce your death benefit).
How much do you know about life insurance?
Have questions about final expense insurance? We've got answers.
No, Northwestern Mutual does not specifically offer final expense insurance. But we do offer a range of life insurance products—including term life, whole life, universal life and variable universal coverage—and flexible coverage options to fit your needs.
Your beneficiaries are free to use the death benefit from your final expense insurance policy however they see fit. This can include your final expenses, like:
An obituary
A casket or urn
Embalming
Funeral or memorial service
Cremation, burial or entombment
Hospice or nursing home care
Legal fees
and more
But, your beneficiaries are free to use the death benefit however they see fit, even if it is not for your final expenses. They could use the funds to pay down a debt, build their own emergency fund or even take some time off of work while they process their loss.
According to the National Funeral Directors Association (NFDA), the average funeral with burial in 2023 cost $7,848, while the average funeral with cremation came in slightly lower at $6,971.
Final expense insurance is a type of whole life insurance. That means it has all of the same features and benefits as other whole life policies, but with a (typically) smaller coverage amount.
Final expense insurance is often more affordable and easier to qualify for than a larger whole life policy. If you want to make sure your loved ones can afford to cover the costs associated with your final expenses, then this could be a good option for you.
That being said, the small death benefit in a final expense policy may not provide the level of coverage you want to leave your beneficiaries. It's possible you may be better served with a whole life or term life policy, or even potentially a combination of the two.
Get matched with a financial advisor in four easy steps.
The Northwestern Mutual difference
No. 1 ranked insurance company for consumer experience
Best life insurance company for consumer experience, 20231
A++ financial strength rating
AAA, Aaa, and AA+—we've earned the highest financial strength ratings awarded to life insurers from all four major rating agencies.2
